LMW diversified into CNC Machine Tools and is a brand leader in manufacturing customised products.

LMW Foundry makes Precision Castings for industries world over.

LMW has also added the Advanced Technology Centre to produce components for Aerospace Industry.

June 2016 quarter results

For the quarter ended June 2016, it registered 10% fall in sales to Rs 557.58 crore.

OPM fell 240 basis points from 10.4% to 8.1% which saw OP fall 31% to Rs 45.02 crore.

Other income fell 8% to Rs 22.25 crore and interest cost jumped 51% to Rs 2 lakh. .

As depreciation fell 21% to Rs 18.39 crore, PBT fell 26% to Rs 48.86 crore.

EO due to VRS was Rs 16 lakh against Rs 43 lakh. Thus PBT after EO fell 26% to Rs 48.70 crore.

Tax fell 30% to Rs 15.56 crore after which PAT fell 23% to Rs 33.14 crore.

Segment results

During the quarter sales from Textile Machinery Division fell 15% to Rs 474.75 crore and accounted for 84% of sales. PBIT fell 31% to Rs 29.03 crore and accounted for 86% of total.

During the quarter sales from Machine Tool and Foundry Division jumped 41% to Rs 87.06 crore and accounted for 15% of sales. PBIT grew 33% to Rs 6.33 crore and accounted for 19% of total.

During the quarter sales from Advanced Technology Center Division fell 17% to Rs 5.96 crore and accounted for 1% of sales. Loss at PBIT level stood at Rs 1.67 crore against Rs 1.22 crore and accounted for -5% of total.

During the quarter PBIT margins of Textile Machinery Division fell from 7.6% to 6.1%.

PBIT margins of Machine Tools and Foundry Division fell from 7.7% to 7.3%.

PBIT margins of Advanced Technology Center fell from -16.9% to -27.9%.

A worldwide reputed company

LMW has been consistently at the forefront of technological advancements in textile machinery. Over a period of time, the company has gained a worldwide reputation for its state-of-the-art technology and high quality standards. LMW has a major role as a totally integrated spinning system manufacturer.

Spinning machines from LMW contributes to a large extent in keeping Indian production costs down and quality standards up.

Continuous upgradation of manufacturing technology and the ability to provide complete range of contemporary textile machinery at a competitive price makes LMW a natural partner of choice.

Order delay leads to fall in sales

Sales fell on account of delays in domestic projects that were scheduled to commence in Jun 2016. The delays were partly on account of banks reevaluating some projects with respect to customers' credit profile in the backdrop of banks' burgeoning NPAs. If not for the project deferrals, Q1 revenues would have been flat y-o-y.

Management expects these orders to see the light of day in Q2FY17.

Order book

LMW booked Rs 290 crore of domestic and 215 crore of export orders in Q1FY17.

LMW closed the quarter with an order book of around Rs 2500 crore, consisting of Rs 2400 in textile machinery orders and Rs 75 crore in machine tools orders.

In addition, Rs 200 crore of export orders are in pipeline, for which letters of credit (LC) are yet to be opened. The company expects most of the new orders to be mid-sized, in the range of 25-30k spindles

Valuation

The share price trades at Rs 3800.